General assignment for the benefit of creditors

Article Categories. The assignee may collect any general assignment for the benefit of creditors by suit in any court general assignment for the benefit of creditors competent jurisdiction. However, the assignee must weigh the risks and costs of continuing to operate the business against the anticipated benefits to be received from a going concern sale. Creditors - Rights and Duties While not required to consent to an Assignment, secured creditors often must agree in advance since their cooperation frequently affects the liquidation of the assets. From general assignment for the benefit of creditors perspective of a secured creditor, in assignments on the web circumstances, instead of being responsible for conducting a foreclosure proceeding, the secured creditor may prefer to have an independent, objective third party with expertise and experience liquidating businesses of the type of the distressed entity act as an assignee. Hunter Faulkner Austin T. Assignments for the benefit of creditors are an alternative to the formal burial process of a Chapter 7 bankruptcy. The assignee is required to give notice to creditors of the assignment, setting a bar date for filing claims with the assignee that is between five to six months later. Hamilton C. In many cases it is considered a conflict of interest for an attorney to act as both attorney for a debtor estate and as an assignee. However, the order of priority among the various priority claims is not clear. Depending on the type of bankruptcy filed, the debtor may retain their property and pay certain debts. Close Search Submit Clear. While there is a risk of an involuntary bankruptcy petition being filed against the assignor, experience has shown that this risk should be relatively small.